Top menu

US Dollar Jumps as Government Bond Yields Rise

Thursday, 26 Apr, 2018

Advertising

Popular

It's an illegal order, says Congress
Mr Nariman said the Chairman of the Rajya Sabha was the only statutory authority to take the decision on the notice. On careful analysis and reflection, I find there is virtually no concrete verifiable imputation.

Keys to a Columbus Blue Jackets Comeback in Games 6 and 7
The Washington Capitals are averaging 3.1 goals per game and are scoring on 22.5 percent of their power play opportunities. Throughout Capital One Arena on Saturday, "Holtby" chants and hymns of praise for the Capitals goaltender filled the air.

Nicaragua scraps reform to end rallys
Ramirez said the deaths and censorship during the protests had ended the possibility of resolving the crisis through talks. The unexpected wave of violence in an otherwise relatively tightly controlled country caused global outrage.

Severino leads Yankees past Blue Jays, 5-1
Although he is pitching against the Yankees for the first time, he has not fared well in matchups with Stanton and Neil Walker . The last time the Yankees didn't have a player 30 or older in the lineup for an April game was 1942, according to STATS.

Facebook Reveals The Lengthy Rulebook It Uses To Remove Posts
That means Facebook deletes calls for violence or slurs that may be protected free speech in the US under the First Amendment. Conservatives say there's too much influence from the left-leaning Silicon Valley, with its liberal leadership and employees.

Adrien Broner-Jessie Vargas Fight Ends in Majority Draw
The result of a "draw" may not be what Broner had in mind, career wise, but in a sense it does provide him a much needed lifeline. Broner left Stafford to train with the very respected and vastly experienced Kevin Cunningham in West Palm Beach, Florida.

Judge 'rules out' Alfie going to Rome (2)
The boy's parents were not in court Tuesday; Williams said they wanted to be at the hospital , at their son's side. The medic said the hospital feared that in the "worst case" Alfie's family would try to take the boy overseas .

Rob Gronkowski confirms he will play next season
One can only assume that the Patriots will do right by Brady , arguably considered to be the greatest to ever play his position. During the offseason, he and his agent would not openly indicate which way he was leaning.

Trader Michael Milano works on the floor of the New York Stock Exchange, Monday, April 23, 2018.

The benchmark 10-year note yield edged up to 3.035 percent for a second day as jitters about growing federal borrowing spurred more selling in USA government debt.

The impact is already reverberating in many emerging markets, with JPMorgan's emerging market bond index .JPMEPR hitting a two-month low.

The Dow Jones Industrial Average fell 14.25 points, or 0.06 percent, to 24,448.69, the S&P 500 gained 0.15 points, or 0.01 percent, to 2,670.29 and the Nasdaq Composite dropped 17.53 points, or 0.25 percent, to 7,128.60.

Several chip makers had flagged near-term concerns about smartphone demand, adding to worries over a US ban on companies exporting goods to Chinese telecom-equipment firm ZTE.

Turning to recent news and events, 10-year US Treasury bonds are now yielding 3.003%. The yield inched past 3 percent shortly after the open of stock trading on Tuesday before pulling back slightly.

All eyes will be on scandal-hit social media firm Facebook FB.O , down 0.3 percent, when it reports results after the closing bell.

And then? Bye-bye bull market.

"The 10-year is potential competition for stocks", said David Kass, a professor of finance at the University of Maryland. It is the current income return you receive when, for instance, you own a bond, as measured by a percentage. It shed 1.4 percent to $67.70 on Tuesday.

The level itself doesn't signal recession.

The yellow metal rose 0.5 per cent on Tuesday to break a three-session losing streak.

WALL STREET: Shares yielded early gains to end almost unchanged.

In Asian trading on Thursday, the 10-year Treasury yield last stood at 3.022 per cent. This one is my favorite tool for gauging the stock market's near-term path of least resistance.

Among smaller banks, Simmons First National rose 3.8 percent to $30.05 and Banner gained 4.4 percent to $58.26. "Equity flows have been roughly flat this month".

"Expectations towards U.S. rate hikes being gradual are enabling equities to take the current yield rise in stride".

"It's not like an automatic trigger for the stock market", Ryan said. It hadn't reached 3 percent since early January of 2014. It's not just the level of the yield, but the speed. Hong Kong's Hang Seng declined 0.5 percent.

As the 10-year is such a benchmark for global debt, it means that the debt repayments for a whole range of companies also rise.

Supply and demand of government bonds.

Bond yields move higher as bond prices move lower.

"The 10-year is very visible", Kass said.

Long-term interest rates affect corporate financing and housing loans, and a sudden rise is considered to have a negative effect on the economy. "There might be some investors who hadn't bought insurance before who think now is a good time to get in". That pushed stocks higher by making bonds less appealing by comparison.

Gold fell on Wednesday as the dollar and U.S. Treasury yields jumped on robust U.S. data and signs of an easing in the U.S.

Let's start with the second question first; people care for a number of important reasons. In addition, large companies such as Caterpillar have warned about increased cost pressures.

It could be an interesting few months for markets. "If the 10-year ticks higher, mortgage costs are going to go higher".